Ukraine as a Software Outsourcing Destination in Eastern Europe

July 26, 2017

More and more companies are opting to outsource their software development needs or even open their own offices in Ukraine. It has been recognized as the premiere outsourcing destination in Eastern Europe by the Outsourcing Journal and by the European Economic. Let’s take a closer look at the statistics, it’s easy to see why.

With over 90,000 tech workers and counting, Ukraine houses the largest number of IT professionals in Europe. By 2020, that number is expected to eclipse the 200,000 mark. 23% of Ukrainian software engineers are highly trained at working with Java, 16% with JavaScript, 15% with C#, 13% with PHP and 7% with Python. Ukraine has 402 universities and colleges and graduates 36,000 IT professionals every year. This means that we have many up and coming professional coming through the pipeline each year.

The Ukrainian Hi-Tech Scene

Ukraine already has more than 1,000 IT companies and more than 2,000 startups. But it’s not just about quantity. The Ukraine tech scene is where some of the world’s most prestigious companies got started. This list includes InvisibleCRM, Ecoisme, Sixa, Mobalytics, Grammarly, Looksery (acquired by Snapchat in 2015), and Readdle. The list goes on and on.

Since Ukraine’s economy ranks in the top 50 among the most innovative economies in the world, even established industry giants have set up R&D centers in Ukraine. This list includes Samsung, Oracle, Boeing, Ericsson, Siemens among others. The total number of R&D centers in Ukraine is more than 100.

The combination of IT professionals and an innovative environment means that major tech events are held in Ukraine each year including IT Arena, Agile Eastern European Conference, iForum and many others. Many conferences held in Ukraine attract 7,000 attendees and international guests.

IBM, Trip Advisor, Cisco and other Fortune 500 clients outsource their software development to Ukraine because our software developers have proven themselves to be trusted software outsourcing partners to American and European clients.

3 pain points to watch out for when outsourcing your software development

Outsourcing is a very convoluted process with a lot of moving parts. It requires a lot of trust in your partners that they have the necessary vision, personnel and expertise to carry out your project. We asked our clients to identify some pain points they previously experienced in outsourcing in general. There were three big issues they all experienced.

First is the code quality. When you work with a large company, your remote software development teams are usually spread out across different locations and even across various time zones. There is a lot of communication and collaboration that needs to happen between developers. and when they are dispersed across a wide geographical area often times they never talk or even meet each other. As a result, the quality of the code suffers. Also, keep in mind that when you work with big companies and you are not the only big fish in the pond, you will not get as much personal attention that you otherwise would get when partnering with a smaller company.

Second, is the problem of retention. By the time people would learn how to do something or become immersed in their work, they would leave. And nothing is being done to prevent them from leaving. They just jump from one ship to another. This means that it is impossible to have talented people working on your software with experience and understanding as to your requirement and expectations.

Finally, the time difference and travel. Often, outsourcing to other markets means working around a 12 or 13-hour time difference. This really puts a strain on communication because you would send your question and, at best, hope for a response the next day. In today’s IT environment, needs and decisions change frequently and you need your communication to be flexible enough to accommodate. And if you decide to personally visit the people working on your software, that means long flights and stopovers.

What makes Innovecs different?

Innovecs is a premiere software development outsourcing company serving clients all over Europe and North America.

Over the past five years, Innovecs has grown to become a market leading IT software outsourcing company. Our areas of expertise span the gamut. We have software development teams who specialize in game development software as well as fintech software development just to name a few. We have assembled an impressive portfolio which includes more than fifty clients whose names speak for themselves. These include Warner Brothers, Captify, Flextronics, Zynga just to name a few. Moreover, we take a lot of pride in the fact that 91% of our clients recommend us to their friends. This is very important because this statistic, more than any other, is a testament to the quality of our work.

Outsourcing software development in Kyiv is a popular choice among companies worldwide, but Innovecs has one unique trait: our Co-Founder and CEO, Alex Lutskiy, lived and worked in the USA for decades and was a client of many outsourcing companies from India and Eastern Europe for a long time. His insider views allow him to better understand the concerns and bottlenecks companies face and he created an IT software company which removes these bottlenecks puts to rest any fears or concerns our clients may have.

“For the outsourcing client, the foremost aspect is the people he chooses to work with. Because in this business, the people who do the work directly are very important to the success of any product development. It can be compared with a romantic relationship. When meeting a girl or a guy on a first date everybody talks about similar things, and the first impression often tells you where the relationship might end up. And it is for you to decide whether or not to continue any further. In the software development outsourcing business things are similar. There are many companies, and they offer fairly similar presentations, such as talking about how great their expertise is in the client’s specific market. There is generally nothing new to the client in these presentations. So when I communicate with a new client either online or in-person, I never show presentations, I establish a dialogue,” – says Alex Lutskiy, Co-founder and CEO of Innovecs.

From the moment you first meet with our staff, you will experience the spirit of true partnership regardless of whether that person is a senior executive or a software engineer. You’ll notice a different attitude from Innovecs people. We don’t ask, “How can we do it?” We ask “How can we do it better?” 80% of our employees hold master’s degrees and 8% have doctoral degrees. Also, 78% of our staff can communicate eloquently in English so there is no language barrier. In general, we are a very diverse company, which we are very proud of. In addition to English, we have German, Russian, Hebrew and Ukrainian and Turkish speakers as well.

We put a lot of emphasis on retention because we understand that providing the best talent and expertise Ukraine has to offer ensures a quality result and fosters grows for us and our clients. In fact, Innovecs retains 97% of its employees and we have engineers who have been working on our client’s projects for years.

Our clients appreciate that we go above and beyond what is expected as well as the pride and ownership that has been already mentioned. One of our clients was particularly impressed by our dedication and our adherence to western values. “I think Ukraine and Eastern Europe in general are the cultures that take more pride and ownership in your work. So, when people deliver the code they actually truly care that it works and that it does what it’s supposed to. What you guys have done here is you’ve taken the western principles and you basically have them on steroids,” – says of our clients, R&D Director of the leading logistics company in USA.

That’s the Innovecs difference. Get ready to be impressed!

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Innovecs is a technology software development company that lives in the cloud. A global company with offices in San Francisco, New York, London, Tel-Aviv and R&D facilities in Ukraine, the company specializes in serving Adtech, Gaming, Fintech, E-commerce, Transportation, Telecom and Healthcare markets.